In my experience, many retirees like to invests in REITs. Some of the reasons many retirees invests in REITs are: They tell me that REITs are safer because underlying is backed by properties. REITs are safer because of rental income which is easy to understand. Even if the REITs' prices drop, it is ok because the investor still get an income and as long as they don't sell it, the … [Read more...]
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These articles were published on CPF Are You Ready? website which covers general financial planning matters.
Case study on CPF Retirement Sum Topping-Up Scheme resource optimisation
One of the most time consuming task I have to do for comprehensive financial planning is often related to the allocation of limited resources. Under comprehensive financial planning, there are a number of conflicting needs namely retirement planning, children’s education and property purchases. For example, if one would to overcommit to a large property, it may jeopardise one’s retirement as … [Read more...]
Analysis of Singapore Saving Bonds
Singapore Saving Bonds’ details were released by MAS yesterday. By now, everybody would have read about the details of the Singapore Saving Bonds. Important details to take note of are: Capital guaranteed by the government. Only individuals can apply. Companies are not allowed to purchase. Application to purchase is similar to that of buying an IPO – you need a CDP account and either … [Read more...]
30 years old woman lost husband; to support 4 children
There was a case in which a lorry driver Jason Lim Wei Kwan drowned when the lorry he was in slid off a barge and sank into the sea off Pasir Panjang Terminal (“Husband's drowning: Mother of four sues firms for $400k”, Straits Times, 6 October 2014). The surviving widow Ms. Samai Chatthahan, 30 and a mother of 4 children decided to sue the parties involved for $400,000. Unfortunately, the … [Read more...]
Refused kidney dialysis because got no money
I read from the newspaper in horror that Singapore has the fifth highest kidney failure rate in the world. What is even worse is that there are some kidney patients who refused treatment because they cannot afford to do so. The article published on 24 February 2014 by Straits Times entitled “Some kidney patients refuse treatment and choose to die” stated that Khoo Teck Puat Hospital had 24 … [Read more...]
A case of changing style and impressive unit trust factsheet performance
My client told me that he like a particular fund because it has impressive returns. A check with the fund's factsheet showed an impressive performance. But I found something different as compared to other factsheets. Usually a factsheet only show a few years of performance in its graph. But for this one, it showed the performance since 1994. I decided to investigate. From 1994 to 2013, the … [Read more...]
Very Large Government Subsidy for Special Needs Trust Company
It was announced on 14 June 2013 that Ministry of Social and Family Development have begun subsidizing the cost of setting up a trust with Special Needs Trust Company (SNTC). This is very good news especially for caregivers who cannot afford setting up trust with private trust companies. The following is a summary of the subsidy: The following are some tips to parents who have children with … [Read more...]
Should you pay off your loan even if you have extra cash?
If you have extra cash, should you pay off your loan? The standard answer is ‘no’ if the extra cash can earn a higher return then your cost of interest of your debt. Wilfred’s answer is that it depends. First, the debt (such as mortgage loan) is a ‘risk-free’ liability. In financial jargon, the word ‘risk-free’ refers to low volatility. When you borrow money from a bank, the debt level does not … [Read more...]
Dividend Stocks worth Checking Out?
The Sunday Times recently published two articles on the above topic. The articles were well written and balanced but one of the heading did not reflect the points made by the article. A person who simply glanced through the newspaper’s heading may think the articles were advocating investing in dividend stocks. In my field of work, I’ve come across numerous investors who invested based on … [Read more...]
How to calculate bonuses for participating life policies
Someone asked me how to calculate bonuses for participating life policies. I asked the individual to provide me with the latest benefit illustration. The policy was already in-force for some time already. I will use this policy as an example on how to calculate bonuses. Unfortunately, there was insufficient information to calculate bonuses for surrender values. So the illustration below is only … [Read more...]
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